Selling and buying are simple terminologies to understand, but if the two procedures are involved in a serious business dealing for example sale and purchase of stock shares, then, these buying and selling would be proceeded in an authorized manner to avoid future conflicts. It would be impractical for companies and shareholders to be into a business of purchasing and selling shares with just verbal commitments. The business setting is competitive, fluctuating and habitually dangerous. The persons that extract proceeding through valid documentation can succeed more quickly and effectively. Keeping such things in mind a sale and purchase agreement is technically drafted. This agreement has its own format. The agreement has to be signature by the buyer and seller, generally, under the supervision of an authorized attorney.
When the business is running on an expanded scale, it is usually not owned by a single entity. , rather several other companies or individuals have a partnership in that business owner ship or in other terms we can say that all these entities have shares in the business. When the business gains profit, the percentage amount of profit is distributed among all share holders or partners depending upon the amount invested by each partner. This is a world-wide style of business in which a company put its stock of share in the stock exchange.
From the stock exchange ,stock brokers commonly sell the shares of a business to the interested buyers.Moreover,sometimes the share holder himself sell his stock share directly to the purchaser, without any mediator. When this type of stock shares are sold and purchased, it becomes vital to document the sale and purchase in writing. Therefore, a sale and purchase agreement has been written to be used as a valid legal proof when needed.
All these procedures of buying and selling of share stocks and then writing them in a buy-sell share stock agreement provides a dense, organized network of dealing and running business. The benefit is that when the buyer and seller write a signature agreement under legal clauses ,they get the legal evidence to present in the future and everybody can trust them in future for fair business dealings.
Likewise, possessing a buy-sell share stock agreement in a written format can help in the case of disputes. Suppose the buyer or seller of the share stocks, if refuses to pay the documented rates, then this agreement can be presented in the court to resolve the matter. This type of agreement can also help in those cases when many people have invested shares in a big business and depend entirely on their profits. Suppose if the ownership of such business changes due to disability, death or any other circumstances ‘then such agreement will help to decide how the future investment is conducted and other taxation features..
The summarized components of such agreement contain the name and short details of buyer and sellers. The details of the shares being sold and purchased. The selling price per share. Warranties from both the parties’. Pre and post closing covenants. Termination clauses and the penalties applied in case of violating the document. The agreement has signature spaces for both the buyer and seller authorities and all the associated details about the buying and selling of the stock shares.
Here is preview of a Free Printable Agreement of Purchase and Sale of Shares by Shareholders created using MS Word,
Here is download link for above mentioned Agreement of Purchase and Sale of Shares by Shareholders,
Related Word Templates
- General Power of Attorney Agreement Template General power of attorney can be described as a written authorization from someone to represent or act on his or her behalf in variety of different affairs. Basically it is a legal document that authorize and appoints another person usually called an attorney, to deal with your different business affairs as well as to make financial and legal decisions for you. Attorney itself means an […]
- Sample Agreement of Purchase and Sale of Business Assets Businessman can play at the different levels of entrepreneurial conduct by widening or narrowing their business. It is very common that one business’ assets move out the front gate every day via sales and drive back the next day in the form of a purchase. Simply it is the sale of one business to another.With the sale or purchase of business asset, there is a date on a day assigned on […]
- General Agreement Template An Agreement is a legal document that includes the responsibilities and obligations of two or more parties involved in a personal or business deal. It is better to get the responsibilities and duties in writing and ask the parties to sign the agreement rather than just trusting their words in the deal. You can either draft your own agreement by understanding the needs and requirements […]
- Joint Venture Agreement Template There are countless types are available to start a new business or company and one of them is joint venture. Joint venture is a business understanding in which two or more than two companies or business entities develop a new business entity to hunt their mutual benefits using shared capital and workforce etc. A joint venture business establishment normally involves a sharing of […]
- Affiliate Program Agreement Template An agreement is signed between two parties that are interested in forming a relationship. The relationship can with either be short term or long term. Short term can be less than a year and long term usually is more than a year. Such distinction is necessary before drafting an agreement because such ambiguities can result in stringent consequences for both of the parties involved. […]
- Non-Disclosure Agreement Template In business life a person might be in a situation to share surreptitious matters with other parties or persons which demand to be kept confidential. A non disclosure agreement is constructed at this point for the sake of secrecy. Non disclosure agreement is a legal document in which one party consents to provide confidential information about their business or products to other party […]
- Commission Sales Agreement Template Companies often prepare and sign an agreement with sales representative or agent to sale out their goods or products on commission basis is usually named as commission sales agreement. Sales commission can be described as a specified sum of money paid by company or business based on a percentage of the sales made by an employee or agent. Sales commission is distinguished from regular […]
- Employment Agency Agreement Template Before talking about the functioning and procedure of writing an employment agency agreement, it is necessary to elaborate the employment agency. A firm that provides employees to the employers and vice versa is usually called as employment agency. In third world countries there is no or minimal concept of employment agencies. But in developed part of the world, employment agencies are […]
- Trademark Licence Agreement Template Before actually knowing the nature of trademark licence agreement, it is necessary to know the basics of trademark. A trademark can be any symbol, logo, word or a statement that defines any company or a product or service. It differentiates the product or the service from the rest of the crowd. Trademarks are like IDs of the products. People buy the products having their desired […]
- Delivery Slip Template A delivery slip is also called an “advice note”. It really is an assistance of distribution. Usually it is placed outside the box with customer’s name and address. It contains a detail of inside items of the box. The customer uses it to cross check the contents of the delivery. After he is satisfied with the items he just received, he signs on the delivery slip that is then, returned […]